It’s been reported this weekend that China Sunergy is facing steep issues competing in the crowded Chinese solar industry.The solar industry is booming, but competition has become tremendous thereby challenging some companies like China Sunergy. The company is a worldwide high-tech leader specializing in top-rate solar modules that produce green power.
China Sunergy is affiliated with the China Electrical Equipment Group, or CEEG. It supplies cells to many leading European solar module makers and provides material to aircraft and other manufacturers.
The company recently opened a facility in Turkey to serve Middle East markets and customers in Europe. However, the stock that’s listed as CSUN continues to drop due to investor wariness about production claims and future growth.
Company officials managed to keep afloat by convincing Chinese banks and creditors to work with them to restructure company debt. Despite problems with prospective performance along with current output, the company also appears to have successfully lined up additional credit from U.S. sources. Company leaders also believe they will raise additional funding in Turkey.
China Sunergy earned more than $30 million in the first quarter of 2014, compared to $54 million in first quarter, 2013. Facing financial challenges, company leaders have cut bak on expenses and refocused strategy towards high value markets like France and Japan.
Worldwide, Chinese solar energy companies face challenges from increased regulation. China’s sometimes stormy relationships with immediate neighbors, including sparring with Japan and Vietnam over energy-rich islands in the China Sea has slowed some company growth.